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Movement of Auto Industry to the south in the US

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  Post Number #1  
Old 9th January 2006, 03:18 PM
Toefuzz - 2006

 
 
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I Say... Movement of Auto Industry to the south in the US

Greetings all! I apologize if I've posted in the wrong forum but couldn't really find one that fit so don't worry, no hard feelings if you move it

As a relatively new automotive supplier in Michigan (b/c I'm young, company has been around for 50+ years) I can't help but be concerned by the number of automotive plants being located in the South. It seems like most of the foreign owned plants and even some domestic are either located in the South or there's talk of expanding in the South. Up here all we hear is doom and gloom. I'm curious as to why this is? I've heard a variety of reasons from some interesting people... unfortunately I don't seem to be able to find too many objective viewpoints. Either companies are moving b/c the Unions are 'the devil' or they are moving b/c they are simply 'greedy capitalist pig dogs trying to screw the proletariate'. Any thoughts on the increase in Southern plants in the last 10 - 15 years? (and by Southern I mean Alamaba, Tennesse, etc... Not Mexico )

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  Post Number #2  
Old 9th January 2006, 03:27 PM
tarheels4 - 2007

 
 
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Quote:
In Reply to Parent Post by Toefuzz

Either companies are moving b/c the Unions are 'the devil'
Quote:
In Reply to Parent Post by Toefuzz

or they are moving b/c they are simply 'greedy capitalist pig dogs trying to screw the proletariate'.
I don't mean to be rude Toefuzz, but assuming you are correct, aren't both reasons good enough for a company to want to move?

Last edited by tarheels4 - 2007; 9th January 2006 at 03:32 PM.
  Post Number #3  
Old 9th January 2006, 03:45 PM
Randy Stewart

 
 
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tarheels right, they are both good reasons and could be one in the same.
Here's my take. The cost of living is lower in the south, especially property, away from the coast. The coal miners, who tragically lost their lives, were making an average of $17 an hour. I don't think any UAW member would perform such a dangerous job at that price.
Another benefit is that the company makes the appearance that it will not let jobs go overseas.
I bought a house here in MI close to 10 years ago. Double lot, etc. and it was about $98k. My sister and brother-in-law live in Rocky Gap VA and bought a similar house. Same sqft living space, same layout with about 3 acres. Their price - $38k.
  Post Number #4  
Old 9th January 2006, 04:16 PM
vanputten's Avatar
vanputten

 
 
Total Posts: 1,068
Recently the Wall Street Journal ran an article which described the Governor of Michigan's recent efforts to get non Big 3 automotive companies to move to Michigan. The article speaks directly to your concern and questions.

Toyota Considers Michigan
As Site for New Engine Plant

By NORIHIKO SHIROUZU
Staff Reporter of THE WALL STREET JOURNAL
January 7, 2006; Page A2


Regards,

Dirk
  Post Number #5  
Old 9th January 2006, 04:21 PM
ralphsulser's Avatar
ralphsulser

 
 
Total Posts: 1,573
Quote:
In Reply to Parent Post by Randy Stewart

tarheels right, they are both good reasons and could be one in the same.
Here's my take. The cost of living is lower in the south, especially property, away from the coast. The coal miners, who tragically lost their lives, were making an average of $17 an hour. I don't think any UAW member would perform such a dangerous job at that price.
Another benefit is that the company makes the appearance that it will not let jobs go overseas.
I bought a house here in MI close to 10 years ago. Double lot, etc. and it was about $98k. My sister and brother-in-law live in Rocky Gap VA and bought a similar house. Same sqft living space, same layout with about 3 acres. Their price - $38k.
Yes Randy for SC it is correct-COL lower ( I bought a 2,400 sq. ft. 1 story house, aprox 80 years old in great shape for $42K, and put $18K in it to remodel interior of kitchen and main bath, and repaint everything) area is basically non-union, lower wages, warmer longer so less utilities to heat facility, lots of workforce availability. One hour from Myrtle Beach and a nice neighor who owns a beach house there and lets us go for free
  Post Number #6  
Old 9th January 2006, 04:39 PM
bmccabe - 2006

 
 
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I've lived in Indiana, Ohio, Florida, Texas, and now Florida again. Every 5 or so years, we follow some job to a new state. Our employers pull up their tent stakes and move wherever the cheapest labor can be found. In all that time I've never seen a cost savings passed down to the consumer. It seems we have all become migrant farmers, following the season and ripe fruit.
  Post Number #7  
Old 9th January 2006, 08:08 PM
Helmut Jilling

 
 
Total Posts: 4,386
Quote:
In Reply to Parent Post by Toefuzz

Either companies are moving... b/c they are simply 'greedy capitalist pig dogs trying to screw the proletariate'.

I work in a lot of plants. This kind of attitude is much more prevelant in the northern plants, than down south. If you owned a company, and wanted to hire a 100 people, where would you rather go?
  Post Number #8  
Old 10th January 2006, 12:16 PM
Randy's Avatar
Randy

 
 
Total Posts: 8,755
Quote:
In Reply to Parent Post by hjilling

I work in a lot of plants. This kind of attitude is much more prevelant in the northern plants, than down south. If you owned a company, and wanted to hire a 100 people, where would you rather go?
That used to be the case but now problems are occuring. According to a great many people I know and from many of the folks I visit or run into during my work what follows is a common feeling amongst traditional Southerner's. In fact someone in the Atlanta area made the following statement about conditions there.

The problem with the South now is that the "Southern atmosphere" and "attitudes" are changing as the Carpetbaggers turn from "D-mn Yankees" into "G-- D-mn Yankees" and the stinking (not the real word) foriegn immigrants.

Truthfully the time when Southern people would willingly work for a lower wage in marginally standard work conditions is past. Wages can still be lower because of a percieved lower standard of living but that is a false assumption. Normally it's the business taxes and other expenses that are actually lower. In fact the entire tax rate for the state may be an incentive.

Southern states are still pretty much opposed to unionism (in fact the word union can cause heart flutter and gasps for breath either from long term memories of the era of Reconstruction and events of the preceeding years or by looking at the industrialized North and its state as it presently exists).

This is a pretty good subject to discuss and I personally enjoy the exercise.

To set some of the record straight here is a little history.
I'm a born Hoosier. I have an ancestor who fought in the Battle of Vincennes and much of my mother's side of the family lives in the Evansville-Booneville-Jasper area. I am though a Southerner ( a Texan actually, I missed being born in San Antonio by 5 days). Part of my dads family can trace our history back to 1740 in Georgia. Much of my life has either been in Arkansas or Texas. During the "War of the Rebellion" we were on both sides. I have ties to both sides of the N-S argument.

Bottom line, as far as I see it, is that business like water will always seek the path of least resistance.
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